South America-focused rare earth developer Aclara Resources (TSX: ARA) has set initial capital costs at $576 million for its Carina Module project in the Goiás state of Brazil.
The preliminary economic assessment of the ionic clay rare earths project shows robust economics with a $1.2 billion net present value and 29% internal rate of return over a 17-year production span.
Aclara estimates it would recover investment in the project in 3.6 years after commissioning, which is projected to start in 2029 due to Brazil’s lengthy permitting process.
According to the company, the recovery of rare earths from its Brazilian project is fully compatible with the technology patented and being executed on a pilot scale in Chile. The method was designed to minimize both cost and carbon dioxide footprint.
“The project design emphasizes eco-friendly practices, avoiding explosives and milling, maximizing water recirculation, and employing a common fertilizer as the main reagent,” chief executive Ramon Barua said in the statement.
The company is now pursuing additional resources through the completion of a reverse circulation drilling campaign, which is already underway and scheduled to be completed in the second quarter of the year.